Business Research Design
This memo is in response to the research study that you presented on behalf of the Board of Directors. Prior to making any business decision, it is imperative that all facts are clear and that there is absolutely no chance for error. Based on the information laid out in the study and related analysis, I would like clarification on a number of points. Clarification of these issues will enable me to make the best business decision for Hewlett Packard.
You indicate that your research involved face-to-face discussions with our 1,000 named accounts. Also included were the findings from the questionnaires sent to 1,000 unassigned accounts. The results indicated that the named accounts did not utilize the inside sales organization as it was originally designed to function. Instead, it was being utilized as a “back-up” system when the outbound representatives were not available. With regards to the unassigned accounts, the data clearly indicates that these accounts yield significant revenues for Hewlett-Packard. The research also showed that yearly sales data was collected via our internal sales tracking system (SASY). Additionally, the results of the study did indicate that the sales volume of the organization was declining slightly year over year.
While the design of your study is, at once, sound, it appears, nonetheless, to be incomplete. Consider the following points:
• Why did this study focus only on the inside sales organization? There are many facets of Hewlett-Packard that may duplicate functions within the company. Are there other organizations within the company that are not achieving their revenue goals? This is an important variable that must be considered.
• Are there organizations that duplicate functionality that could possibly be merged? If so, HP would not have to include an entire organization in the work force reduction program; instead, only those positions which overlap would be eliminated. In this way, the integrity of each organization would be maintained, while at the same time HP would recognize cost savings.
• The field is the backbone of Hewlett-Packard Company. Without the field, we do not have the resources to sell our products and remain competitive. Researching the value add of organizations that do not directly contribute to HP’s revenue might be worth looking at. For instance, HP employs Business Administrative Managers to act as the liaison between the executive assistant and the manager that they support. These assistants could conceivably report directly to the manager they are assigned to. Researching the cost savings of eliminating the Administrative Managers would be another variable to consider.
Considering the points listed above would require a change in the sample design so as to include all organizations within each of the disciplines. It would, in turn, require a restructuring of the research design. Such changes would demand an examination of internal job functions. Customer surveys would not be required.
• Performance is a key aspect of any organization, and yet it [next page]